Sales Commission

Sales Commission: Learn

Sales commissions are paid to employees or companies that sell
merchandise by interacting with customers. The commission is
meant to motivate sales persons to sell more. A commission may
be paid in addition to a salary or instead of a salary.

Some common places that commissions are paid are: in real estate marketing,
insurance, and retails sales of electronics and major appliances. Any time
a sale is made, someone might be making a commission, and the larger the
typical sale, the more likely the salesperson makes a commission.

The commission amount is usually calculated as a percentage of the sales
that the salesperson made.

For example, there is a company that sells a major appliance for $550, and
their salespeople make a 2% commission on top of their salary. Every time
a salesperson sells the appliance, they receive a commission of 550*0.02 = $11.

Commission: Practice

What is the commission?

00:00

Note: Your answer should begin with a dollar sign and be
rounded to the nearest cent.

What is your commission amount if the rate is % and
you make a sale of $?